Western Potash Corp. Intersects 19.9 WT% K2O Over 22.25m with Little or No Carnallite, Provides an Update on Expanded Resource Definition Drilling and Seismic Program
Thu. December 03, 2009; Posted: 09:25 AM
http://www.tradingmarkets.com/.site/news/Stock%20News/2698087/
VANCOUVER, Dec 03, 2009 (BUSINESS WIRE) -- WPX | Quote | Chart | News | PowerRating -- Western Potash Corp. (the "Company") (TSX.V: WPX, FSE: AHE) is pleased to provide results from the first two wells completed as part of the expanded 5 well, $8.5 million CAD resource definition program on the Milestone property in southern Saskatchewan. These wells are the fifth and sixth wells drilled on the property. Results from the Milestone-004 well returned a 23.35 m composite intersection of potash mineralization with a weighted average grade of 17.35 wt % K2O across three potash members, while the Milestone-005 well reported a 22.25 m composite intersection of potash mineralization with a weighted average grade of 19.89 wt % K2O across three potash members. Results from the Milestone-005 well are considered of particular interest as very little Carnallite was intersected in any of the three potash members, including the Esterhazy member. The presence of Carnallite in the Esterhazy member is not unusual in the region, but the absence of Carnallite in the Milestone-005 well does suggest that in some areas of the Milestone property parts of the Esterhazy member could be of economic interest.
The Milestone-004 and Milestone-005 wells, as shown in figure 1 are located approximately 3.0 km to the south and north respectively of the Milestone-003 well which reported a composite thickness of 24.4m of potash mineralization with a grade of 18.2% wt K2O in a press release dated August 24, 2009. A summary of the results from the two most recent wells are presented in Table 1.
Table 1: Potash thickness and weighted average grade from the Milestone -- 004 and Milestone-005 wells.
Well Potash Member From KB, m To KB, m Interval (m) K2O Wt % MgO Wt % Insoluble Wt % Best Intercept
Patience Lake 1735.7 1747.8 12.1 17.65 0.09 10.81 20.34 wt% K2O over 5.6m
Belle Plaine 1751.55 1756.75 5.2 18.72 0.09 3.97 25.94 wt% K2O over 2.25m
Milestone-004 Esterhazy 1774.95 1781 6.05 15.4 0.38 5.16 18.31wt% K2O over 3.4m, 0.2 wt% MgO
Total 23.35 17.31 0.17 7.82
Patience Lake 1703.1 1714.95 11.85 18.34 0.1 11.11 21.06 wt% K2O over 6.25m
Belle Plaine 1719.45 1723.9 4.45 21.25 0.06 4.4 25.8 wt% K2O over 2.6m
Milestone-005 Esterhazy 1742.3 1748.25 5.95 21.97 0.06 3.37 24.42wt% K2O over 4.15m, 0.06 wt% MgO
Total 22.25 19.89 0.08 7.70
Note: Total intervals noted in this release are composites. All drill intercepts noted in this release are considered the true thickness of the mineralization; as the salt beds are relatively flat-lying and down-hole directional surveys indicate the hole was essentially vertical upon intersecting the salt and potash sequences. The core recovered from this hole was logged, photographed, split, and sampled at the Company's secure core storage facility on the property. All samples were handled in accordance with the Company's Chain of Custody procedures. The half-split core samples from the wells were analyzed at the Saskatchewan Research Council (SRC) Laboratory in Saskatoon. The Laboratory has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).
The Company points out that the presence, thicknesses and grade of the potash beds in these fifth and sixth wells are similar in tenor and are as encouraging as those seen in previous wells and indicate a remarkable continuity of the potash beds in the region when comparing with the results reported for the first four wells. The Company feels that the thicknesses and grades obtained by geochemical sampling and down hole gamma ray logging are consistent with those mined at the Belle Plaine solution mine and that it has now demonstrated regional continuity of all three potash members, over 18 km of strike length, between the wells drilled to date.
It is also very important to note that information from the drilling to date confirms the presence of the heat anomaly that helped attract the Company to the project area. Temperature measurements from all the wells show minimum formation temperatures ranging from 60deg C to 65.5deg C. Temperature will be an important component of the economics of future mining on the property. The solubility of potash increases with temperature such that the higher the formation temperature, the higher the yield of potassium chloride in the brine solution to be processed for potash recovery. A solution mine, accessing a higher formation temperature resource, will produce more potassium chloride in solution than an operation tapping an equivalent resource at lower formation temperatures. The Company views formation temperature as a key parameter in solution mining economics, offering advantages in solution mass-balance and savings in capital, energy and processing costs.
The 100% owned Milestone property, comprising 500 square kilometers, is located 30 kilometers southeast of Regina, and southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world.
Seismic Update and Resource Calculation
The Company is also pleased to announce that the 2D seismic program has now been completed. This seismic program was designed to assist with planning the expanded drilling and the upcoming 3D seismic program. This work has allowed the Company to plan three additional wells, with drilling commencing immediately. Permitting and licensing of the Company's 3D seismic program is now well underway.
Agapito and Associates Inc. of Golden, Colorado continues to draft an NI43-101 compliant inferred resource calculation and report based on the results of the initial four well drill program. This report is expected to be completed during the fourth quarter of 2009. Agapito and Associates has also been engaged to complete an NI-43-101 compliant indicated and inferred resource calculation based on the results of the expanded 5 well resource definition drill program, 2D seismic, and 3D seismic surveys. This report is expected to be complete during early 2010, subject to the completion of the aforementioned drilling and seismic surveys.
Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release.
For more information on Western Potash Corp.'s projects, please visit the Company's website at: www.westernpotash.com
ON BEHALF OF THE BOARD OF DIRECTORS
"J. Patricio Varas" J. Patricio Varas President and CEO
This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include that results from Milestone-005 well are considered of particular interest as very little Carnallite was intersected as the absence of Carnallite suggest that in the Milestone property parts of the Esterhazy member could be of economic interest; that the presence, thicknesses and grade of the potash beds in these fifth and sixth wells are similar in tenor and are as encouraging as those seen in previous wells and indicate a remarkable continuity of the potash beds in the region; that the Company feels the thicknesses and grades obtained are consistent with those mined at the Belle Plaine solution mine and that it has now demonstrated regional continuity of all three potash members, over 18 km of strike length; that information from the drilling confirms the presence of a heat anomaly; that temperature will be an important component of the economics of future mining on the property; that a solution mine, accessing a higher formation temperature resource, will produce more potassium chloride in solution than an operation tapping an equivalent resource at lower formation temperatures; that the Company views formation temperature as a key parameter in solution mining economics, offering advantages in solution mass-balance and savings in capital, energy and processing costs; that seismic work completed has allowed the Company to plan three additional wells, with drilling commencing immediately; that Agapito and Associates Inc. of Golden, Colorado continues to draft an NI43-101 compliant inferred resource calculation and report; that this report is expected to be completed during the fourth quarter of 2009; that Agapito and Associates has also been engaged to complete an NI-43-101 indicated and inferred resource calculation based on the results of the expanded definition drill and seismic program; that this report is expected to be complete during early 2010. It is the Company's policy not to update forward looking statements. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6113104&lang=en
SOURCE: Western Potash Corp.
Western Potash Corp.
John Costigan, 604-689-9378
